BALTIMORE — A new inspector general's report sheds light on millions paid out by Baltimore City to house the homeless during COVID-19.
The investigative reports suggests multiple entities were involved in carrying out the operation, but that may have led to money getting mixed up causing the City at times to fall millions in debt.
It all started in April 2020, when the City rented 123 rooms at a local hotel.
Per the contract, the hotel agreed to provide homeless occupants staying in the rooms three meals a day at a rate of $6 per.
Originally it was the hotel's job to send the City invoices for all costs accrued including meals and cleaning services.
In July 2022, the City signed on with a second shelter that would provide free mental health treatment and prescription management on the City's dime.
This shelter too was providing meals, but they ended up going with a separate food vendor without notifying the hotel.
That's when it seems billing started to get disorganized.
At one point the City mistakenly paid the hotel and shelter for the same exact services. The City's error cost themselves $460,920.00, which they've since had trouble recouping.
That's because the shelter went ahead and paid off their food vendor before ultimately sending the total bill to the City, all while the hotel was following what they were initially instructed to do, covering food costs, then tacking that onto invoices sent to the City for reimbursement.
For a period of time this resulted in the hotel and its food vendor being unpaid.
The City once owed the hotel $2 million, which in turn left their food vendor out of $247,826.80.
Ultimately the City paid the hotel $1.9 million, decreasing the food vendor's outstanding balance to $10,512.
That means the hotel is still owed $100,000, and the City told the Inspector General they have no intention of paying it until the hotel settles the $460,920.00 over payment. Until that issue gets sorted out, it appears the food vendor will end up on the short end of the $10,512 that remains owed to them.
According to the inspector general, the hotel is no longer contracted with the City.
SEE ALSO: City reaches deal to buy hotels, turn them into homeless shelters
The report follows the City's $15 million purchase of the Holiday Inn Express and Sleep Inn properties on Front Street, to combat homelessness.
To read the full report, click here.
